In morning trade the Magellan Financial Group Ltd (ASX: MFG) share price is trading lower following the release of its latest funds under management update.
At the time of writing the fund manager's shares are down 2% to $53.33. Despite this, its shares are up ~140% since this time last year.
What was in the update?
During the month of June the company experienced net inflows of $488 million. This comprised net retail inflows of $132 million and net institutional inflows of $356 million.
Thanks to these net inflows and positive market movements, total funds under management increased to $86,718 million. This was a solid 4.8% month on month increase from $82,759 million at the end of May.
The vast majority of these funds are with its Global Equities business, which grew its funds under management by 5.4% month on month to $64,020 million.
Elsewhere, the Infrastructure Equities business saw its funds under management rise 3.8% month on month to $15,162 million and its Australian equities business experienced a 1.2% month on month lift in funds under management to $7,536 million.
This strong finish to the financial year meant that Magellan recorded average funds under management of $75.8 billion for the 12 months ended June 30 2019. This was a 28.5% increase on the $59 billion it averaged over the 12 months ended June 30 2018.
Performance fees and distribution update.
According to the release, Magellan estimates that it is entitled to performance fees of approximately $83 million for the year ended June 30 2019.
This will be more than double FY 2018's performance fees of ~$40 million and goes some way to justifying its impressive share price rally over the last 12 months.
The release also advised that Magellan will pay distributions (net of reinvestment) of approximately $604 million in July, which will be reflected in its funds under management figures in next month's announcement.
Elsewhere in the industry on Friday, the Perpetual Limited (ASX: PPT) share price and the Platinum Asset Management Ltd (ASX: PTM) share price are both trading flat.
